State of Virgin Blue
 

Given that the financial state of Qantas has been the main topic of discussion recently, I'm just wondering what the latest is with VB? One would assume they have the weaker position but is this really still the case given Jetstar are still apparently making money through the LCC model?

It's been a few months since they posted their $100 million net loss. Have things taken a turn for the better or are they still headed on a downhill trend?

Although I'm sure this will end up in a bitch fight as every thread seems to these days, please try and keep responses as factual as possible.

Given the state of EVERYTHING at the moment, I would be very surprised if they are not bleeding lotsa $$$ just like verybody else. Especially as the VA thing is syphoning bigbucks.

I wont get into the bitchfight again but as sure as hell if QF wasn't gifting JQ everything they too(JQ) would be going out the door backwards. But hey, accountants will do all the smoke and mirror stuff and show that they are actually making a quid and QF is losing squillions. Its all soooooo predictable.

Just wait for the Co spin to start. Woteva.

Expect the same from VB as QF management. They will do all they can to make sure VAus looks as healthy as possible at the expense of VB. They have to in order to justify their decision to go with it, just so people won't think they have done the wrong thing.

So is there still a very real chance of VB going to the wall? I guess it's just a matter of time for any company before the 'smoke and mirrors' don't work anymore if that's being implemented to make things look healthier than they are.

VB are reputedly quite well managed.I dont see them trading themselves to death. Being a listed company they do come under more scrutiny than an unlisted one.VB annual reports are available for all to read if anyone interested.
If jetstar had to genuinely compete their job would be made to be very tough.
Fact is the LCC is part of life and qf's portfolio.If jetstar didnt exist another carrier ie tiger or other cashed up player would be in there killing qantas' full service model.
So yes qf have gifted jetstar quite bit but they are a very cheap outfit regardless and fill a niche that will be filled by someone.may as well be a qf offshoot.

Whilst their cost base is not as low as J* its a hell of a lot lower than QF's and i dare say that the 777 is starting to hurt QF on the LA route.

State or "The" state
 

VB is merely a business not a division of the federation!...Is this what you were after?

Ultimately, Tiger will be the nail in the coffin for VB.

Apart from any cash issues, the VB model is dead and buried once Tiger gets a "paw" hold on the domestic Australian network.

It will be back to the good old days of 2 airlines - JQ (QF) and TT(SQ).

Maybe, but tiger is getting a good reputation of pissing people off with the low cost trickery.

In the meantime VB are filling aircraft to the brim with people that are swiping credit cards.

the few flights I have been on of late have certainly been no where near full !!!, and thats over a holiday period. Reason I travelled with them was I couldnt get on jokestar as they were full.( and much cheaper)
Interesting times ahead me thinks??!!

blacksmoke - that is probably why they were full - cheap fares! Yield Management is a black art at times!

Dale Hardale - exactly what model is that then? - it has changed drastically in the past couple of years. Tiger hasn't exactly set the world on fire and given no business can lose money forever (not forgetting Tiger Aus has yet to make any!) I would not want to bet too much on any airline.

Yeah i recall reading somewhere that in Feb VB were down 0.1% and QF alot more. Interesting times indeed.

Tigers latest promotion is starting to look like ryan air prices:

Domestic Flights

(from Melbourne) Price Fly period
Adelaide FREE + $22.08* 01 Jun 09 - 30 Sep 09
Canberra FREE + $31.88* 01 Jun 09 - 30 Sep 09
Hobart FREE + $23.11* 01 Jun 09 - 30 Sep 09
Launceston FREE + $24.51* 01 Jun 09 - 30 Sep 09
Sydney FREE + $25.51* 03 Jul 09 - 30 Sep 09
Gold Coast from A$78* 01 Jun 09 - 30 Sep 09
Mackay from A$98* 01 Jun 09 - 30 Sep 09
Rockhampton from A$98* 02 Jun 09 - 29 Sep 09
Sunshine Coast from A$98* 01 Jun 09 - 30 Sep 09
Alice Springs from A$98* 02 Jun 09 - 29 Sep 09
Perth from A$128* 01 Jun 09 - 30 Sep 09

(from Adelaide) Price Fly period
Canberra FREE + $35.13* 01 Jun 09 - 30 Sep 09
Hobart FREE + $26.36* 01 Jun 09 - 30 Sep 09
Melbourne FREE + $25.14* 01 Jun 09 - 30 Sep 09
Gold Coast from A$88* 01 Jun 09 - 30 Sep 09
Alice Springs from A$98* 02 Jun 09 - 29 Sep 09
Perth from A$98* 01 Jun 09 - 30 Sep 09

Welcome To Tiger Airways

On one hand I dont know how airlines can begin to make any sort of profit with the cost and complexity of operating an airline, yet on the other hand I dont have too much sympathy for airlines because they fail to charge what it costs to provide a seat.

The public will never pass up a cheap seat and unfortunately they now expect the 20 dollar seats.

Unfortunately it is the staff that work for airlines that end up taking it in the shorts as companies plead poverty - and attempt to reduce costs by cutting salaries, conditions and work hours.

At the end of the day, the aeroplanes cost pretty much the same, the fuel is roughly the same price, as are landing and airport charges, so really the only place to make substantive cost reductions is in the salaries paid to staff.

All so we can effectively subsidise some bogan with thongs and stubbies on a cheap ticket.

I just wish some sanity would return to ticket pricing so that reasonable, not excessive fares, would allow people to travel safely and confortably on aeroplanes crewed, maintained and supported by people reasonably compensated for their labours.

Just remember that Singapore Inc. has MUCH deeper pockets than Virgin Blue, which is struggling to pay it's bills let alone move ahead.

Spot on Dehavillandriver.

Tiger offered 30,000 "free" seats the other day. Makes you wonder where its all heading.

I don't think Tiger care how much they piss people off. They all end up coming back for more if they can save a buck.

I agree otto, esp now in this climate people are more price sensitive and do not really care about service as much. That is the reason why Qantas reported a 20% drop in premium class forward bookings. This will continue for quite some time I'm afraid. Wonder what Jet* thinks of Tiger's free fares?

Spot on Otto, humans have short memories when they can save a buck !!!!:O

Virgin Blue, which is struggling to pay it's bills let alone move ahead.
Today 12:51

O.K. I'll bite.

Des Demona, It would be accepted by most that SQ have pretty deep pockets but please grace us with your incredible inside knowledge and tell us what bills aren't being paid by VB.

Inflammatory, unsupported drivel.